In this guide, we will provide you with all the information you need to know about when to pay income tax in Singapore for the tax season of 2023. From determining whether you need to file a tax return to calculating your taxes, we will cover everything to ensure that you file your taxes correctly and on time. This article also provides information on how to pay your taxes and what to do if you need help or advice with the tax filing process.
Determining if You Need to Pay Income Tax in Singapore
As a general rule, if any of the following conditions apply in the preceding calendar year, an individual must submit their Income Tax Return:
The individual’s income exceeds $22,000
The individual has self-employment earnings with a net profit exceeding $6,000
The individual is a non-resident who received income from Singapore.
Understanding Taxable and Non-Taxable Income for Singapore Residents
Before determining when to pay income tax in Singapore, taxpayers should know that taxable income includes any income that is earned in the country or received from outside Singapore. Here is an overview of the difference between taxable income and non-taxable income.
Taxable Income | Non-Taxable Income |
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Calculating Income Tax in Singapore
As taxpayers find out when to pay income tax in Singapore, they should also be aware that the income tax system in Singapore follows a progressive structure, where those with higher incomes are subject to a higher percentage of tax.
Currently, the maximum personal income tax rate is 22%. However, beginning in the year of assessment 2024, income exceeding $500,000 up to $1 million will be subject to a 23% tax rate, while income above $1 million will be taxed at a rate of 24%.
From YA 2017 to YA 2023
Chargeable Income | Income Tax Rate | Gross Tax Payable |
On the first S$20,000 On the following S$10,000 | 0 2% | 0 S$200 |
On the first S$30,000 On the following S$10,000 | - 3.50% | S$200 S$350 |
On the first S$40,000 On the following S$40,000 | - 7% | S$550 S$2,800 |
On the first S$80,000 On the following S$40,000 | - 11.5% | S$3,350 S$4,600 |
On the first S$120,000 On the following S$40,000 | - 15% | S$7,950 S$6,000 |
On the first S$160,000 On the following S$40,000 | - 18% | S$13,950 S$7,200 |
On the first S$200,000 On the following S$40,000 | - 19% | S$21,150 S$7,600 |
On the first S$240,000 On the following S$40,000 | - 19.5% | S$28,750 S$7,800 |
On the first S$280,000 On the following S$40,000 | - 20% | S$36,550 S$8,000 |
On the first S$320,000 In excess of S$320,000 | - 22% | S$44,550 |
From YA 2024 onwards
Chargeable Income | Income Tax Rate | Gross Tax Payable |
On the first S$320,000 On the following S$180,000 | - 22% | S$44,550 S$39,600 |
On the first S$500,000 On the following S$500,000 | - 23% | S$84,150 S$115,000 |
On the first S$1,000,000 In excess of $1,000,000 | - 24% | S$199,150 |
When to File Income Tax in Singapore
In terms of when to pay income tax in Singapore, the due date for tax filings by individuals is April 15th of every year. For electronic filings, the deadline is extended to April 18th. The income tax is calculated based on the previous year's earnings.
How to Pay Income Tax in Singapore
As much as individuals need to be aware of when to pay income tax in Singapore, they also need to know the several options to choose from when paying their taxes. The preferred payment mode for paying income tax is GIRO. Other payment options include:
PayNow QR
AXS
Internet Banking Bill Payment/Fund Transfer
Telegraphic Transfer
SingPost
Consequences of Late Payment of Taxes
Being aware of when to pay income tax in Singapore allows taxpayers to avoid penalties. If an individual fails to pay their taxes on time, IRAS may take the following actions:
Enforce fines for payments that are past due.
Delegate representatives, such as a bank, employer, tenant, or attorney, to collect any unpaid taxes or manage the sale of any assets owned.
Issue a Travel Restriction Order (TRO) to prohibit departure from Singapore.
Pursue legal measures.
When To Pay Income Tax In Singapore: Need any advice or help regarding filing income tax in Singapore?
If you need help with when to pay income tax in Singapore, it is recommended that you seek assistance from experts and professionals. SJH Advisory is a reputable firm that provides tax advisory services for income tax filing in Singapore. The team of tax experts can help you navigate the tax system and ensure that you file your taxes correctly and on time. Contact SJH Advisory today to learn more about their services and how we can help you with your income tax filing needs.
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